Answer:
Answer 1.
DVD Equipment Set Yoga Mat
Sale in Units 13500 4500 9000
Sale Mix 3 1 2
Sales Mix Ratio = 3:1:2
Answer 2.
Let the Break Even Sales = X Units
Therefore, Linear equation of BEP:
3/6 X (8-4) + 1/6 X (25-15) + 2/6 X (16-9) = 119520 (Fixed Costs)
X = 19920 Units
BEP of
DVD = 19,920 Units X 3/6 = 9960 Units
Equipment Set = 19,920 Units X 1/6 = 3320 Units
Yoga Mat = 19920 Units X 2/6 = 6640 Units
Answer 3.
DVD Equipment Set Yoga Mat Total
Sale in Units 13,500 4,500 9,000 27,000
SP 8 25 16
Sales in $ 108,000 112,500 144,000 364,500
Less: Variable Costs 54,000 67,500 81,000 202,500
Contribution 54,000 45,000 63,000 162,000
Contribution Margin Ratio 50.00% 40.00% 43.75% 44.44%
Contribution Margin Ratio = Contribution / Sales
Overall Break Even Sales Revenue = $119520 (Fixed Costs) / 44.44% (Contribution Margin Ratio)
Overall Break Even Sales Revenue = $268,920
Answer 4.
Margin of Safety = Sales - BES
Margin of Safety = $364,500 - 268920 = $95,580
Explanation:
